Morgan Stanley has upgraded Titan Industries to 'equal-weight' from 'underweight', citing under-performing shares, which the bank attributes to concerns about potential government intervention to curb gold imports and disappointing October-December results.
A planned money laundering bill from the government could be restricted to bullion and precious gems only, and not apply to jewellery retailing, which would remove an overhang on the stock, Morgan Stanley added.
However, the investment bank sees long-term visibility for Titan's business model clouded by government efforts to moderate demand for gold.
Titan shares were up 0.86 percent on the Bombay Stock Exchange at 10.39 am.
Copyright: Thomson Reuters 2013
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